P.E.I.'s infamous e-gaming lawsuit struck out

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A P.E.I. Supreme Court judge has struck out a statement of claim in a lawsuit over the province’s failed e-gaming scheme.

Justice Gordon Campbell also ordered plaintiffs Capital Markets Technologies, Inc. (CMT) and 7645686 Canada Inc. to pay more than $1 million in security costs if they file a new claim.

In striking the entire claim, Campbell said the court’s processes are meant to get a result that is fair and just to all parties.

“This statement of claim constitutes an abuse of those processes of the court.”

The plaintiffs sued the provincial government, former finance minister Wes Sheridan, Steve MacLean, Cheryl Paynter and Brad Mix from Innovation P.E.I., and former chiefs of staff Chris LeClair and Allan Campbell, who both worked in the premier’s office.

The claim also named Paul Jenkins and Garth Jenkins as defendants.

The plaintiffs are suing for $25 million with allegations that included breach of contract and breach of confidentiality.

It all stemmed from the province’s failed plan to turn P.E.I. into an online gaming regulator.

In 2011-12, the province and the Mi’kmaq Confederacy of P.E.I. looked at using CMT’s technology as part of that initiative, but eventually scrapped the plan.

If it had proceeded, the province estimated it would bring in up to $85 million per year in tax and licensing revenues.

In his 36-page decision, Campbell wrote that he struck out 116 out of 283 paragraphs in the statement of claim for various reasons, including that some were irrelevant.

Campbell wrote that opinions or arguments were not to be included in a statement of claim and that many paragraphs didn’t comply with the rules of pleadings.

He also wrote that it’s not for the defendants or the court to pick through what’s left of the statement of claim to find what viable parts are left.

“I do not consider the claim as written to be capable of being ‘fixed’ by a series of amendments and deletions,” Campbell wrote.

Campbell’s decision nullified the statements of defence that had been filed, since there was no longer a claim for them to respond to.

The ruling does allow for the plaintiffs to file a new statement of claim, but they will have to pay a security of $1,032,250 for costs if they do.

That security would help offset some of the defendants’ costs if the claim is unsuccessful.

The plaintiffs sued the provincial government, former finance minister Wes Sheridan, Steve MacLean, Cheryl Paynter and Brad Mix from Innovation P.E.I., and former chiefs of staff Chris LeClair and Allan Campbell, who both worked in the premier’s office.

The claim also named Paul Jenkins and Garth Jenkins as defendants.

The plaintiffs are suing for $25 million with allegations that included breach of contract and breach of confidentiality.

It all stemmed from the province’s failed plan to turn P.E.I. into an online gaming regulator.

In 2011-12, the province and the Mi’kmaq Confederacy of P.E.I. looked at using CMT’s technology as part of that initiative, but eventually scrapped the plan.

If it had proceeded, the province estimated it would bring in up to $85 million per year in tax and licensing revenues.

In his 36-page decision, Campbell wrote that he struck out 116 out of 283 paragraphs in the statement of claim for various reasons, including that some were irrelevant.